~~ Provides guidance for 2020
LAKE OSWEGO, Ore., Oct. 25, 2019 /PRNewswire/ -- The Greenbrier Companies, Inc. (NYSE: GBX) today reported financial results for its fourth fiscal quarter and year ended August 31, 2019.
Fourth Quarter Highlights
- Net earnings attributable to Greenbrier for the quarter were $35.1 million, or $1.06 per diluted share, on record revenue of $914.2 million. Quarterly results include $8.2 million, net of tax, ($0.25 per share) in costs related to the ARI acquisition.
- Adjusted net earnings attributable to Greenbrier were $43.3 million ($1.31 per diluted share) excluding the ARI acquisition costs.
- Adjusted EBITDA for the quarter was $109.4 million, or 12.0% of revenue.
- Record new railcar deliveries totaled 7,300 units for the quarter.
- Diversified orders of 4,900 railcars were received during the quarter, valued at over $500.0 million.
- New railcar backlog was 30,300 units with an estimated value of $3.3 billion. Backlog reflects the transfer of 10,600 units from ARI and the removal of 3,500 small cube covered hoppers for sand service for which the company realized negotiated economic benefits. Remaining backlog does not include any other orders for the sand market.
- Marine backlog exceeds $100 million and extends through calendar 2020.
- Board declares a quarterly dividend of $0.25 per share, payable on December 4, 2019 to shareholders of record as of November 13, 2019.
- Dividend yield approximately 3.1% as of October 24, 2019.
Fiscal Year 2019 Highlights
- Net earnings attributable to Greenbrier for the year were $71.1 million, or $2.14 per diluted share, on record revenue of $3.0 billion. Adjusted net earnings attributable to Greenbrier for the year were $95.2 million, or $2.87 per diluted share, excluding the non-cash goodwill impairment charge and ARI acquisition costs.
Fiscal Year 2019 Highlights (Cont.)
- Adjusted EBITDA for the year was $290.9 million, or 9.6% of revenue.
- Record new railcar deliveries totaled 23,400 units for the year.
- Orders of 20,600 units valued at approximately $2.2 billion across a broad range of railcar types with over 20% originating internationally.
- Cash provided by operating activities exceeded $125 million for the second half of the year.
William A. Furman, Chairman & CEO said, "Greenbrier ended its fiscal 2019 with positive momentum. We enter fiscal 2020 supported by solid railcar order activity and improvements in operational areas that caused headwinds in 2019. We are pleased that in the fourth quarter, both deliveries and earnings met expectations. A robust backlog exceeding 30,000 units, valued at over $3 billion, combined with a healthy balance sheet provides optionality for the future. Greenbrier's strategy remains focused on four elements: 1) reinforcing core North American markets, 2) executing on our international strategy while improving profitability, 3) robust development of the talent pipeline and 4) continuing to grow the business at scale."
Furman concluded, "Recent progress and opportunities in Europe and other international markets are positive. We are optimistic about long term success in these markets. In North America, we completed the largest acquisition in Greenbrier's history in late July. We have been actively welcoming new colleagues and integrating the new manufacturing operations. We expect to generate approximately $15 million in synergies in fiscal 2020, consistent with our initial expectations. The ARI acquisition adds talent in manufacturing, engineering and other fields. With this long-contemplated transaction now complete, Greenbrier is one of the largest freight railcar builders and railcar service providers in the world."
Business Outlook
Based on current business trends and production schedules for fiscal 2020, Greenbrier believes:
- Deliveries will be 26,000 – 28,000 units including Greenbrier-Maxion (Brazil) which will account for approximately 2,000 units
- Revenue will be approximately $3.5 billion
- Diluted EPS of $2.60 – $3.00 excluding approximately $20 – $25 million of pre-tax integration and acquisition-related expenses from the ARI acquisition
As noted in the "Safe Harbor" statement, there are risks to achieving this guidance. Certain orders and backlog in this release are subject to customary documentation and completion of terms.
Financial Summary
|
Q4 FY19 |
Q3 FY19 |
Sequential Comparison – Main Drivers |
|
|
Revenue |
$914.2M |
$856.2M |
Record quarterly revenue driven by higher deliveries |
|
Gross margin |
14.6% |
12.4% |
Primarily higher deliveries and strong syndication activity |
|
Selling and administrative expense |
$60.6M |
$54.4M |
Q4 includes $11.0 million and Q3 includes $5.8 million of ARI acquisition expense |
|
Net gain on disposition of equipment |
$3.5M |
$11.0M |
Lower lease fleet portfolio sales |
|
Adjusted EBITDA |
$109.4 |
$84.4M |
Increased operating earnings; see reconciliation on page 12 |
|
Effective tax rate |
25.0% |
30.0% |
Q4 tax rate in line with annual expectations |
|
Loss from unconsolidated affiliates |
$0.9M |
$4.6M |
Improvement in Brazil operations |
|
Net earnings attributable to noncontrolling interest |
$15.7M |
$10.6M |
Higher GIMSA JV deliveries |
|
Adjusted net earnings attributable to Greenbrier |
$43.3M(1) |
$29.6M(2) |
Increased operating earnings driven by higher deliveries and improved gross margin |
|
Adjusted diluted EPS |
$1.31(1) |
$0.89(2) |
|
(1) |
Excludes expense of $8.2 million ($0.25 per share), net of tax, associated with ARI acquisition costs |
|
(2) |
Excludes $10.0 million ($0.30 per share) non-cash impact associated with a goodwill impairment charge and expense of $4.3 million ($0.13 per share), net of tax, associated with ARI acquisition costs |
Segment Summary
|
Q4 FY19 |
Q3 FY19 |
Sequential Comparison – Main Drivers |
|
|
Manufacturing |
|||
|
Revenue |
$802.1M |
$681.6M |
Increase driven by higher deliveries |
|
Gross margin |
14.5% |
13.3% |
Higher deliveries and increased syndication activity |
|
Operating margin (1) |
11.8% |
10.6% |
|
|
Deliveries (2) |
7,300 |
6,500 |
Record quarterly deliveries |
|
Wheels, Repair & Parts |
|||
|
Revenue |
$85.7M |
$125.0M |
Lower volumes driven by decreased rail traffic |
|
Gross margin |
4.7% |
4.1% |
Improved Wheels and Parts profitability partially offset by Repair operations |
|
Operating margin (1) |
(0.2%) |
(7.1%) |
|
|
Leasing & Services |
|||
|
Revenue |
$26.4M |
$49.6M |
Less secondary market syndication activity |
|
Gross margin |
50.7% |
21.4% |
More normalized margin levels reflecting less secondary market syndication activity |
|
Operating margin (1) (3) |
41.2% |
30.9% |
|
|
(1) |
See supplemental segment information on page 11 for additional information. |
|
(2) |
Excludes Brazil deliveries which are not consolidated into manufacturing revenue and margin. |
|
(3) |
Includes Net gain on disposition of equipment, which is not included in gross margin. |
Conference Call
Greenbrier will host a teleconference to discuss its fourth quarter 2019 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website. Teleconference details are as follows:
- October 25, 2019
- 8:00 a.m. Pacific Daylight Time
- Phone: 1-630-395-0143, Password: "Greenbrier"
- Real-time Audio Access: ("Newsroom" at http://www.gbrx.com)
Please access the site 10 minutes prior to the start time.
About Greenbrier
Greenbrier, headquartered in Lake Oswego, Oregon, is a leading international supplier of equipment and services to global freight transportation markets. Greenbrier designs, builds and markets freight railcars and marine barges in North America. Greenbrier Europe is an end-to-end freight railcar manufacturing, engineering and repair business with operations in Poland, Romania and Turkey that serves customers across Europe and in the nations of the Gulf Cooperation Council. Greenbrier builds freight railcars and rail castings in Brazil through two separate strategic partnerships. We are a leading provider of freight railcar wheel services, parts, repair, refurbishment and retrofitting services in North America through our wheels, repair & parts business unit. Greenbrier offers railcar management, regulatory compliance services and leasing services to railroads and related transportation industries in North America. Through unconsolidated joint ventures, we produce industrial and rail castings, tank heads and other components. Greenbrier owns a lease fleet of 9,400 railcars and performs management services for 380,000 railcars. Learn more about Greenbrier at www.gbrx.com.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This press release may contain forward-looking statements, including any statements that are not purely statements of historical fact. Greenbrier uses words, and variations of words, such as "affirms," "anticipates," "believes," "forecast," "potential," "goal," "contemplates," "expects," "intends," "plans," "projects," "hopes," "seeks," "estimates," "strategy," "could," "would," "should," "likely," "will," "may," "can," "designed to," "future," "foreseeable future" and similar expressions to identify forward-looking statements. These forward-looking statements include, without limitation, the information under the heading "Business Outlook" and any other information regarding future performance and strategies. These forward-looking statements are not guarantees of future performance and are subject to certain risks and uncertainties that could cause actual results to differ materially from the results contemplated by the forward-looking statements.
Factors that might cause such a difference include, but are not limited to, economic downturns (global or national); reported backlog and awards that are not indicative of Greenbrier's financial results; uncertainty or changes in the credit markets and financial services industry; high levels of indebtedness and compliance with the terms of Greenbrier's indebtedness; write-downs of goodwill, intangibles and other assets in future periods; sufficient availability of borrowing capacity; integration of past or future acquisitions, including the integration of the manufacturing business of American Railcar Industries, and establishment of joint ventures; fluctuations in demand for newly manufactured railcars or failure to obtain orders as anticipated in developing forecasts; interest rate fluctuations and volatility in global or national financial markets; loss of one or more significant customers; customer order or payment defaults or related issues; policies and priorities of the federal government regarding international trade, taxation and infrastructure; risks related to operations outside of the U.S. including economic or political instability, dishonoring of contracts, exchange rates, diminishment of property rights; violations of anti-corruption laws; actual future costs and the availability of materials and a trained workforce; failure to design or manufacture new products or technologies or to achieve certification or market acceptance of new products or technologies; steel, energy, or specialty component price fluctuations and availability and scrap surcharges; changes in product mix and the mix between segments; labor disputes, energy shortages or operating difficulties that might disrupt manufacturing operations or the flow of cargo; production difficulties and product delivery delays as a result of, among other matters, costs or inefficiencies associated with expansion, start-up, or changing of production lines or changes in production rates, changing technologies, transfer of production between facilities or non-performance of alliance partners, subcontractors or suppliers; inability to compete successfully; ability to obtain suitable contracts for the sale of leased equipment and risks related to car hire and residual values; succession planning; discovery of defects in railcars or services resulting in increased warranty costs or litigation; inability to lease railcars at favorable rates and on favorable terms; physical damage or product or service liability claims that exceed Greenbrier's insurance coverage; train derailments or other accidents or claims that could subject Greenbrier to legal claims; actions or inactions by various regulatory agencies including potential environmental remediation obligations or changing tank car or other railcar or railroad regulation; a decline in performance or demand, oversupply, or increase in efficiency, of the rail freight industry; and issues arising from investigations of whistleblower complaints. More information on these risks and other potential factors that could cause our results to differ from our forward-looking statements is included in the Company's filings with the SEC, including in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's most recently filed periodic reports on Form 10-K and subsequent Form 10-Q filings. Except as otherwise required by law, the Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date hereof.
Adjusted EBITDA, Adjusted net earnings attributable to Greenbrier, Adjusted diluted EPS and Diluted EPS range excluding integration and acquisition-related expenses from the ARI acquisition are not financial measures under generally accepted accounting principles (GAAP). These metrics are performance measurement tools used by rail supply companies and Greenbrier. You should not consider these metrics in isolation or as a substitute for other financial statement data determined in accordance with GAAP. In addition, because these metrics are not a measure of financial performance under GAAP and are susceptible to varying calculations, the measures presented may differ from and may not be comparable to similarly titled measures used by other companies.
We define Adjusted EBITDA as Net earnings before Interest and foreign exchange, Income tax expense (benefit), Depreciation and amortization and excluding the impact associated with items we do not believe are indicative of our core business or which affect comparability. We believe the presentation of Adjusted EBITDA provides useful information as it excludes the impact of financing, foreign exchange, income taxes and the accounting effects of capital spending. These items may vary for different companies for reasons unrelated to the overall operating performance of a company's core business. We believe this assists in comparing our performance across reporting periods.
Adjusted net earnings attributable to Greenbrier and Adjusted diluted EPS excludes the impact associated with items we do not believe are indicative of our core business or which affect comparability. Diluted EPS range excluding integration and acquisition-related expenses from the ARI acquisition exclude integration and acquisition-related expenses from the ARI acquisition. We believe this assists in comparing our performance across reporting periods.
|
THE GREENBRIER COMPANIES, INC. |
|||||
|
Consolidated Balance Sheets |
|||||
|
(In thousands, unaudited) |
|||||
|
August 31, 2019 |
May 31, 2019 |
February 28, 2019 |
November 30, 2018 |
August 31, 2018 |
|
|
Assets |
|||||
|
Cash and cash equivalents |
$ 329,684 |
$ 359,625 |
$ 341,500 |
$ 462,797 |
$ 530,655 |
|
Restricted cash |
8,803 |
21,471 |
21,584 |
8,872 |
8,819 |
|
Accounts receivable, net |
373,383 |
330,385 |
335,732 |
306,917 |
348,406 |
|
Inventories |
664,693 |
592,099 |
574,146 |
492,573 |
432,314 |
|
Leased railcars for syndication |
182,269 |
130,489 |
163,472 |
233,415 |
130,926 |
|
Equipment on operating leases, net |
366,688 |
376,241 |
381,336 |
317,282 |
322,855 |
|
Property, plant and equipment, net |
717,973 |
478,502 |
472,739 |
461,120 |
457,196 |
|
Investment in unconsolidated affiliates |
91,818 |
53,036 |
58,685 |
58,682 |
61,414 |
|
Intangibles and other assets, net |
125,379 |
97,022 |
101,284 |
95,958 |
94,668 |
|
Goodwill |
129,947 |
74,318 |
82,743 |
77,508 |
78,211 |
|
$ 2,990,637 |
$ 2,513,188 |
$ 2,533,221 |
$ 2,515,124 |
$ 2,465,464 |
|
|
Liabilities and Equity |
|||||
|
Revolving notes |
$ 27,115 |
$ 25,952 |
$ 22,323 |
$ 22,189 |
$ 27,725 |
|
Accounts payable and accrued liabilities |
568,360 |
473,106 |
474,863 |
438,304 |
449,857 |
|
Deferred income taxes |
13,946 |
12,089 |
29,481 |
30,631 |
31,740 |
|
Deferred revenue |
85,070 |
76,170 |
91,533 |
108,566 |
105,954 |
|
Notes payable, net |
822,885 |
483,918 |
486,107 |
487,764 |
436,205 |
|
Contingently redeemable noncontrolling interest |
31,564 |
24,722 |
25,637 |
28,449 |
29,768 |
|
Total equity - Greenbrier |
1,276,730 |
1,262,315 |
1,257,818 |
1,257,631 |
1,250,101 |
|
Noncontrolling interest |
164,967 |
154,916 |
145,459 |
141,590 |
134,114 |
|
Total equity |
1,441,697 |
1,417,231 |
1,403,277 |
1,399,221 |
1,384,215 |
|
$ 2,990,637 |
$ 2,513,188 |
$ 2,533,221 |
$ 2,515,124 |
$ 2,465,464 |
|
|
THE GREENBRIER COMPANIES, INC. |
||||||
|
Consolidated Statements of Income |
||||||
|
(In thousands, except per share amounts, unaudited) |
||||||
|
Years Ended August 31, |
||||||
|
2019 |
2018 |
2017 |
||||
|
Revenue |
||||||
|
Manufacturing |
$ 2,431,499 |
$ 2,044,586 |
$ 1,725,188 |
|||
|
Wheels, Repair & Parts |
444,502 |
347,023 |
312,679 |
|||
|
Leasing & Services |
157,590 |
127,855 |
131,297 |
|||
|
3,033,591 |
2,519,464 |
2,169,164 |
||||
|
Cost of revenue |
||||||
|
Manufacturing |
2,137,625 |
1,727,407 |
1,373,967 |
|||
|
Wheels, Repair & Parts |
420,890 |
318,330 |
288,336 |
|||
|
Leasing & Services |
108,590 |
64,672 |
85,562 |
|||
|
2,667,105 |
2,110,409 |
1,747,865 |
||||
|
Margin |
366,486 |
409,055 |
421,299 |
|||
|
Selling and administrative |
213,308 |
200,439 |
170,607 |
|||
|
Net gain on disposition of equipment |
(40,963) |
(44,369) |
(9,740) |
|||
|
Goodwill impairment |
10,025 |
- |
- |
|||
|
Earnings from operations |
184,116 |
252,985 |
260,432 |
|||
|
Other costs |
||||||
|
Interest and foreign exchange |
30,912 |
29,368 |
24,192 |
|||
|
Earnings before income tax and loss from unconsolidated affiliates |
153,204 |
223,617 |
236,240 |
|||
|
Income tax expense |
(41,588) |
(32,893) |
(64,014) |
|||
|
Earnings before loss from unconsolidated affiliates |
111,616 |
190,724 |
172,226 |
|||
|
Loss from unconsolidated affiliates |
(5,805) |
(18,661) |
(11,764) |
|||
|
Net earnings |
105,811 |
172,063 |
160,462 |
|||
|
Net earnings attributable to noncontrolling interest |
(34,735) |
(20,282) |
(44,395) |
|||
|
Net earnings attributable to Greenbrier |
$ 71,076 |
$ 151,781 |
$ 116,067 |
|||
|
Basic earnings per common share |
$ 2.18 |
$ 4.92 |
$ 3.97 |
|||
|
Diluted earnings per common share |
$ 2.14 |
$ 4.68 |
$ 3.65 |
|||
|
Weighted average common shares |
||||||
|
Basic |
32,615 |
30,857 |
29,225 |
|||
|
Diluted |
33,165 |
32,835 |
32,562 |
|||
|
Dividends declared per common share |
$ 1.00 |
$ 0.96 |
$ 0.86 |
|||
|
THE GREENBRIER COMPANIES, INC. |
||||||
|
Consolidated Statements of Cash Flows |
||||||
|
(In thousands, unaudited) |
||||||
|
Years Ended August 31, |
||||||
|
2019 |
2018 |
2017 |
||||
|
Cash flows from operating activities: |
||||||
|
Net earnings |
$ 105,811 |
$ 172,063 |
$ 160,462 |
|||
|
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: |
||||||
|
Deferred income taxes |
(20,225) |
(40,496) |
4,377 |
|||
|
Depreciation and amortization |
83,731 |
74,356 |
65,129 |
|||
|
Net gain on disposition of equipment |
(40,963) |
(44,369) |
(9,740) |
|||
|
Stock based compensation expense |
11,153 |
29,314 |
26,427 |
|||
|
Accretion of debt discount |
4,458 |
4,171 |
2,340 |
|||
|
Noncontrolling interest adjustments |
7,402 |
2,864 |
(677) |
|||
|
Goodwill Impairment |
10,025 |
- |
- |
|||
|
Other |
145 |
1,688 |
(845) |
|||
|
Decrease (increase) in assets: |
||||||
|
Accounts receivable, net |
13,022 |
(83,551) |
(25,272) |
|||
|
Inventories |
(143,168) |
(26,592) |
(2,787) |
|||
|
Leased railcars for syndication |
(96,110) |
(54,023) |
41,015 |
|||
|
Other |
6,843 |
34,115 |
17,558 |
|||
|
Increase (decrease) in liabilities: |
||||||
|
Accounts payable and accrued liabilities |
55,910 |
54,032 |
(25,422) |
|||
|
Deferred revenue |
(19,275) |
(20,231) |
33,039 |
|||
|
Net cash provided by (used in) operating activities |
(21,241) |
103,341 |
285,604 |
|||
|
Cash flows from investing activities: |
||||||
|
Acquisitions, net of cash acquired |
(361,878) |
(34,874) |
(27,127) |
|||
|
Proceeds from sales of assets |
125,427 |
153,224 |
24,149 |
|||
|
Capital expenditures |
(198,233) |
(176,848) |
(86,065) |
|||
|
Investment in and advances to unconsolidated affiliates |
(11,393) |
(26,455) |
(40,632) |
|||
|
Cash distribution from joint ventures |
2,096 |
4,661 |
550 |
|||
|
Net cash used in investing activities |
(443,981) |
(80,292) |
(129,125) |
|||
|
Cash flows from financing activities: |
||||||
|
Net changes in revolving notes with maturities of 90 days or less |
(105) |
23,401 |
4,324 |
|||
|
Proceeds from issuance of notes payable |
525,000 |
13,771 |
276,093 |
|||
|
Repayments of notes payable |
(182,971) |
(22,269) |
(8,297) |
|||
|
Debt issuance costs |
(8,630) |
- |
(9,082) |
|||
|
Dividends |
(33,193) |
(29,914) |
(24,890) |
|||
|
Cash distribution to joint venture partner |
(16,879) |
(73,033) |
(28,511) |
|||
|
Investment by joint venture partner |
- |
6,500 |
- |
|||
|
Tax payments for net share settlement of restricted stock |
(6,321) |
(7,723) |
(5,215) |
|||
|
Net cash provided by (used in) financing activities |
276,901 |
(89,267) |
204,422 |
|||
|
Effect of exchange rate changes |
(12,666) |
(14,666) |
12,499 |
|||
|
Increase (decrease) in cash and cash equivalents and restricted cash |
(200,987) |
(80,884) |
373,400 |
|||
|
Cash and cash equivalents and restricted cash |
||||||
|
Beginning of period |
539,474 |
620,358 |
246,958 |
|||
|
End of period |
$ 338,487 |
$ 539,474 |
$ 620,358 |
|||
|
Balance Sheet Reconciliation: |
||||||
|
Cash and cash equivalents |
$ 329,684 |
$ 530,655 |
$ 611,466 |
|||
|
Restricted cash |
8,803 |
8,819 |
8,892 |
|||
|
Total cash and cash equivalents and restricted cash as presented above |
$ 338,487 |
$ 539,474 |
$ 620,358 |
|||
|
THE GREENBRIER COMPANIES, INC. |
||||||||||
|
Supplemental Information |
||||||||||
|
(In thousands, except per share amounts, unaudited) |
||||||||||
|
Operating Results by Quarter for 2019 are as follows: |
||||||||||
|
First |
Second |
Third |
Fourth |
Total |
||||||
|
Revenue |
||||||||||
|
Manufacturing |
$ 471,789 |
$ 476,019 |
$ 681,588 |
$ 802,103 |
$ 2,431,499 |
|||||
|
Wheels, Repair & Parts |
108,543 |
125,278 |
124,980 |
85,701 |
444,502 |
|||||
|
Leasing & Services |
24,191 |
57,374 |
49,584 |
26,441 |
157,590 |
|||||
|
604,523 |
658,671 |
856,152 |
914,245 |
3,033,591 |
||||||
|
Cost of revenue |
||||||||||
|
Manufacturing |
417,805 |
442,996 |
590,788 |
686,036 |
2,137,625 |
|||||
|
Wheels, Repair & Parts |
100,978 |
118,455 |
119,821 |
81,636 |
420,890 |
|||||
|
Leasing & Services |
13,207 |
43,376 |
38,971 |
13,036 |
108,590 |
|||||
|
531,990 |
604,827 |
749,580 |
780,708 |
2,667,105 |
||||||
|
Margin |
72,533 |
53,844 |
106,572 |
133,537 |
366,486 |
|||||
|
Selling and administrative expense |
50,432 |
47,892 |
54,377 |
60,607 |
213,308 |
|||||
|
Net gain on disposition of equipment |
(14,353) |
(12,102) |
(11,019) |
(3,489) |
(40,963) |
|||||
|
Goodwill impairment |
- |
- |
10,025 |
- |
10,025 |
|||||
|
Earnings from operations |
36,454 |
18,054 |
53,189 |
76,419 |
184,116 |
|||||
|
Other costs |
||||||||||
|
Interest and foreign exchange |
4,404 |
9,237 |
9,770 |
7,501 |
30,912 |
|||||
|
Earnings before income tax and earnings (loss) from unconsolidated affiliates |
32,050 |
8,817 |
43,419 |
68,918 |
153,204 |
|||||
|
Income tax expense |
(9,135) |
(2,248) |
(13,008) |
(17,197) |
(41,588) |
|||||
|
Earnings before earnings (loss) from unconsolidated affiliates |
22,915 |
6,569 |
30,411 |
51,721 |
111,616 |
|||||
|
Earnings (loss) from unconsolidated affiliates |
467 |
(786) |
(4,564) |
(922) |
(5,805) |
|||||
|
Net earnings |
23,382 |
5,783 |
25,847 |
50,799 |
105,811 |
|||||
|
Net earnings attributable to noncontrolling interest |
(5,426) |
(3,018) |
(10,599) |
(15,692) |
(34,735) |
|||||
|
Net earnings attributable to Greenbrier |
$ 17,956 |
$ 2,765 |
$ 15,248 |
$ 35,107 |
$ 71,076 |
|||||
|
Basic earnings per common share (1) |
$ 0.55 |
$ 0.08 |
$ 0.47 |
$ 1.08 |
$ 2.18 |
|||||
|
Diluted earnings per common share (1) |
$ 0.54 |
$ 0.08 |
$ 0.46 |
$ 1.06 |
$ 2.14 |
|||||
|
(1) |
Quarterly amounts do not total to the year to date amount as each period is calculated discretely. Diluted EPS is calculated by including the dilutive effect, using the treasury stock method, associated with shares underlying the 2.875% Convertible notes, 2.25% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. |
|
THE GREENBRIER COMPANIES, INC. |
||||||||||
|
Supplemental Information |
||||||||||
|
(In thousands, except per share amounts, unaudited) |
||||||||||
|
Operating Results by Quarter for 2018 are as follows: |
||||||||||
|
First |
Second |
Third |
Fourth |
Total |
||||||
|
Revenue |
||||||||||
|
Manufacturing |
$ 451,485 |
$ 511,827 |
$ 510,099 |
$ 571,175 |
$ 2,044,586 |
|||||
|
Wheels, Repair & Parts |
78,011 |
88,710 |
94,515 |
85,787 |
347,023 |
|||||
|
Leasing & Services |
30,039 |
28,799 |
36,773 |
32,244 |
127,855 |
|||||
|
559,535 |
629,336 |
641,387 |
689,206 |
2,519,464 |
||||||
|
Cost of revenue |
||||||||||
|
Manufacturing |
380,850 |
429,165 |
427,875 |
489,517 |
1,727,407 |
|||||
|
Wheels, Repair & Parts |
72,506 |
80,708 |
85,850 |
79,266 |
318,330 |
|||||
|
Leasing & Services |
16,865 |
14,116 |
19,155 |
14,536 |
64,672 |
|||||
|
470,221 |
523,989 |
532,880 |
583,319 |
2,110,409 |
||||||
|
Margin |
89,314 |
105,347 |
108,507 |
105,887 |
409,055 |
|||||
|
Selling and administrative expense |
47,043 |
50,294 |
51,793 |
51,309 |
200,439 |
|||||
|
Net gain on disposition of equipment |
(19,171) |
(5,817) |
(14,825) |
(4,556) |
(44,369) |
|||||
|
Earnings from operations |
61,442 |
60,870 |
71,539 |
59,134 |
252,985 |
|||||
|
Other costs |
||||||||||
|
Interest and foreign exchange |
7,020 |
7,029 |
6,533 |
8,786 |
29,368 |
|||||
|
Earnings before income tax and earnings (loss) from unconsolidated affiliates |
54,422 |
53,841 |
65,006 |
50,348 |
223,617 |
|||||
|
Income tax benefit (expense) |
(18,135) |
11,301 |
(15,944) |
(10,115) |
(32,893) |
|||||
|
Earnings before earnings (loss) from unconsolidated affiliates |
36,287 |
65,142 |
49,062 |
40,233 |
190,724 |
|||||
|
Earnings (loss) from unconsolidated affiliates |
(2,910) |
147 |
(12,823) |
(3,075) |
(18,661) |
|||||
|
Net earnings |
33,377 |
65,289 |
36,239 |
37,158 |
172,063 |
|||||
|
Net earnings attributable to noncontrolling interest |
(7,124) |
(3,647) |
(3,288) |
(6,223) |
(20,282) |
|||||
|
Net earnings attributable to Greenbrier |
$ 26,253 |
$ 61,642 |
$ 32,951 |
$ 30,935 |
$ 151,781 |
|||||
|
Basic earnings per common share (1) |
$ 0.90 |
$ 2.10 |
$ 1.03 |
$ 0.95 |
$ 4.92 |
|||||
|
Diluted earnings per common share (1) |
$ 0.83 |
$ 1.91 |
$ 1.01 |
$ 0.94 |
$ 4.68 |
|||||
|
(1) |
Quarterly amounts do not total to the year to date amount as each period is calculated discretely. Diluted EPS is calculated using the more dilutive of two approaches. The first approach includes the dilutive effect, using the treasury stock method, associated with shares underlying the 2.875% Convertible notes, restricted stock units that are not considered participating securities and performance based restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved. The second approach supplements the first by including the "if converted" effect of the 3.5% Convertible notes during the periods in which they were outstanding. Under the "if converted" method, debt issuance and interest costs, both net of tax, associated with the convertible notes are added back to net earnings and the share count is increased by the shares underlying the convertible notes. The 3.5% Convertible notes are included in the calculation of both approaches using the treasury stock method when the average stock price is greater than the applicable conversion price. |
|
THE GREENBRIER COMPANIES, INC. |
||||||||||||
|
Supplemental Information |
||||||||||||
|
(In thousands, unaudited) |
||||||||||||
|
Segment Information |
||||||||||||
|
Three months ended August 31, 2019: |
||||||||||||
|
Revenue |
Earnings (loss) from operations |
|||||||||||
|
External |
Intersegment |
Total |
External |
Intersegment |
Total |
|||||||
|
Manufacturing |
$ 802,103 |
$ 14,829 |
$ 816,932 |
$ 94,628 |
$ 1,579 |
$ 96,207 |
||||||
|
Wheels, Repair & Parts |
85,701 |
11,826 |
97,527 |
(191) |
640 |
449 |
||||||
|
Leasing & Services |
26,441 |
13,482 |
39,923 |
10,883 |
13,061 |
23,944 |
||||||
|
Eliminations |
- |
(40,137) |
(40,137) |
- |
(15,280) |
(15,280) |
||||||
|
Corporate |
- |
- |
- |
(28,901) |
- |
(28,901) |
||||||
|
$ 914,245 |
$ - |
$ 914,245 |
$ 76,419 |
$ - |
$ 76,419 |
|||||||
|
Three months ended May 31, 2019: |
||||||||||||
|
Revenue |
Earnings (loss) from operations |
|||||||||||
|
External |
Intersegment |
Total |
External |
Intersegment |
Total |
|||||||
|
Manufacturing |
$ 681,588 |
$ 29,201 |
$ 710,789 |
$ 72,110 |
2,000 |
$ 74,110 |
||||||
|
Wheels, Repair & Parts |
124,980 |
11,601 |
136,581 |
(8,820) |
808 |
(8,012) |
||||||
|
Leasing & Services |
49,584 |
5,848 |
55,432 |
15,337 |
4,913 |
20,250 |
||||||
|
Eliminations |
- |
(46,650) |
(46,650) |
- |
(7,721) |
(7,721) |
||||||
|
Corporate |
- |
- |
- |
(25,438) |
- |
(25,438) |
||||||
|
$ 856,152 |
$ - |
$ 856,152 |
$ 53,189 |
$ - |
$ 53,189 |
|||||||
|
Total assets |
||||||||||||
|
August 31, |
May 31, |
|||||||||||
|
2019 |
2019 |
|||||||||||
|
Manufacturing |
$ 1,606,571 |
$ 1,143,718 |
||||||||||
|
Wheels, Repair & Parts |
306,725 |
307,630 |
||||||||||
|
Leasing & Services |
708,799 |
650,483 |
||||||||||
|
Unallocated |
368,542 |
411,357 |
||||||||||
|
$ 2,990,637 |
$ 2,513,188 |
|||||||||||
|
THE GREENBRIER COMPANIES, INC. |
||||||||
|
Supplemental Information |
||||||||
|
(In thousands, excluding backlog and delivery units, unaudited) |
||||||||
|
Reconciliation of Net earnings to Adjusted EBITDA |
||||||||
|
Three Months Ended |
Year Ended |
|||||||
|
August 31, |
May 31, 2019 |
August 31, |
||||||
|
Net earnings |
$ 50,799 |
$ 25,847 |
$ 105,811 |
|||||
|
Interest and foreign exchange |
7,501 |
9,770 |
30,912 |
|||||
|
Income tax expense |
17,197 |
13,008 |
41,588 |
|||||
|
Depreciation and amortization |
22,898 |
20,018 |
83,731 |
|||||
|
Goodwill impairment |
- |
10,025 |
10,025 |
|||||
|
ARI acquisition costs |
10,971 |
5,761 |
18,820 |
|||||
|
Adjusted EBITDA |
$ 109,366 |
$ 84,429 |
$ 290,887 |
|||||
|
Three Months August 31, 2019 |
Year Ended August 31, |
|||||
|
Backlog Activity (units) (1) |
||||||
|
Beginning backlog |
26,100 |
27,400 |
||||
|
Orders received |
4,900 |
20,600 |
||||
|
Transfer of ARI backlog |
10,600 |
10,600 |
||||
|
Removal of small cube hoppers |
(3,500) |
(3,500) |
||||
|
Produced onto Balance Sheet |
(2,300) |
(6,200) |
||||
|
Produced & delivered from backlog |
(5,500) |
(18,600) |
||||
|
Ending backlog |
30,300 |
30,300 |
||||
|
Delivery Information (units) (1) |
||||||
|
Production sold directly to third parties |
5,500 |
18,600 |
||||
|
Sales of Leased railcars for syndication |
1,800 |
4,800 |
||||
|
Total deliveries |
7,300 |
23,400 |
||||
|
(1) |
Includes Greenbrier-Maxion, our Brazilian railcar manufacturer, which is accounted for under the equity method |
|
THE GREENBRIER COMPANIES, INC. |
||||
|
Supplemental Information |
||||
|
(In thousands, except per share amounts, unaudited) |
||||
|
Reconciliation of common shares outstanding |
||||
|
The shares used in the computation of the Company's basic and diluted earnings per common share are reconciled as follows: |
||||
|
Three Months Ended |
Year Ended |
|||
|
August 31, 2019 |
May 31, 2019 |
August 31, |
||
|
Weighted average basic common shares outstanding (1) |
32,591 |
32,603 |
32,615 |
|
|
Dilutive effect of convertible notes (2) |
- |
- |
- |
|
|
Dilutive effect of restricted stock units (3) |
585 |
580 |
550 |
|
|
Weighted average diluted common shares outstanding |
33,176 |
33,183 |
33,165 |
|
|
(1) |
Restricted stock grants and restricted stock units that are considered participating securities, including some grants subject to certain performance criteria, are included in weighted average basic common shares outstanding when the Company is in a net earnings position. |
|
(2) |
The dilutive effect of the 2.875% Convertible notes issued in February 2017 and the 2.25% Convertible notes issued in July 2019 were excluded for the periods in which they were outstanding as the average stock price was less than the applicable conversion price and therefore was anti-dilutive. |
|
(3) |
Restricted stock units that are not considered participating securities and restricted stock units subject to performance criteria, for which actual levels of performance above target have been achieved, are included in Weighted average diluted common shares outstanding when the Company is in a net earnings position. |
|
Reconciliation of Net earnings attributable to Greenbrier to Adjusted net earnings attributable to Greenbrier |
||||||||
|
Three Months Ended |
Year Ended |
|||||||
|
August 31, |
May 31, 2019 |
August 31, |
||||||
|
Net earnings attributable to Greenbrier |
$ 35,107 |
$ 15,248 |
$ 71,076 |
|||||
|
Goodwill impairment |
- |
10,025 |
10,025 |
|||||
|
ARI acquisition costs, net of tax |
8,228 |
4,285 |
14,079 |
|||||
|
Adjusted net earnings attributable to Greenbrier |
$ 43,335 |
$ 29,558 |
$ 95,180 |
|||||
|
Reconciliation of Diluted earnings per share to Adjusted diluted earnings per share |
||||||
|
Three Months Ended |
Year Ended |
|||||
|
August 31, 2019 |
May 31, 2019 |
August 31, |
||||
|
Diluted earnings per share |
$ 1.06 |
$ 0.46 |
$ 2.14 |
|||
|
Goodwill impairment |
- |
0.30 |
(1) |
0.30 |
(1) |
|
|
ARI acquisition costs |
0.25 |
(3) |
0.13 |
(2) |
0.43 |
(4) |
|
Adjusted diluted earnings per share |
$ 1.31 |
$ 0.89 |
$ 2.87 |
|||
|
(1) |
Goodwill impairment of $10.0 million divided by weighted average diluted common shares outstanding of 33,183 for the three months ended May 31, 2019 and divided by weighted average diluted common shares outstanding of 33,165 for the year ended August 31, 2019. |
|
(2) |
ARI acquisition costs of $4.3 million, net of tax, divided by weighted average diluted common shares outstanding of 33,183 for the three months ended May 31, 2019. |
|
(3) |
ARI integration costs of $8.2 million, net of tax, divided by weighted average diluted common shares outstanding of 33,176 for the three months ended August 31, 2019. |
|
(4) |
ARI integration costs of $14.1 million, net of tax, divided by weighted average diluted common shares outstanding of 33,165 for the year ended August 31, 2019. |
SOURCE The Greenbrier Companies, Inc. (GBX)
